The Importance of Obtaining a Good Credit Score

When you begin the task of repairing your bad credit, there are many factors that should be considered. There is always going to be pressure to repair your credit because your credit score controls so many aspects of your financial future. Not everyone has the same problems with credit, so there are different options depending on where you’re at in the credit repair process.

A person’s credit score can be affected for numerous reasons, but the first step for any credit repair is to research your options. The best way to find out where your credit stands is to request copies of your credit reports from the credit bureaus. You only have one free copy a year of your credit reports, but you can see your credit score anytime you apply for a loan. Don’t apply for a loan just to see your credit history. Every time a creditor checks your credit, your score is lowered, so never let a creditor check your credit until you know for sure that you’re going to be accepting the loan agreement. Once a creditor checks your credit, it will be on your history for at least three years. If you have an updated credit history, take it with you when you go see a creditor. They probably won’t use it, but you can probably still get some negotiating power without having to have your credit checked.

Once you’ve attained your credit history, through whatever means, you need to check it for suspicious charges that you’re not familiar with. As soon as you find a fraudulent charge, file a report with the credit bureaus immediately. Whether the charges belong to you or not, they still affect your score, so file a claim as quickly as possible. In 1971, the United States Congress passed a law that protected consumers against fraudulent charges on their credit, so take advantage of this law that is entitled to you by the Fair Crediting Reporting Act (FCRA).

After you have disputed the fraudulent charges, you will want to wait at least six months before applying for a loan or credit card. It usually takes about six months for the charges to be removed completely from your history. If the fraudulent charges haven’t been removed from your history after six months, contact the credit bureaus and find out why.

Once you have removed any fraudulent charges, take care of the charges that are your responsibly. Try to pay off your bills every month, and if you can’t make the entire payment, at least pay a partial amount to keep your credit clean of delinquent charges. Always monitor your credit, even if you have a good credit history because mistakes do happened and you shouldn’t have to pay for them. As soon as you make the goal to repair your credit, don’t get deterred and never give up.

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